Archived - Official International Reserves

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The Department of Finance announced today that Canada's official international reserves increased by an amount equivalent to US$615 million during October to US$34,214 million.

Details on the level and composition of Canada's reserves as of October 31, 2005, as well as the major factors underlying the change in reserves, are provided below. All figures are in millions of US dollars unless otherwise noted.

Foreign Currency Reserves

Securities

27,350

Deposits

3,773

Total securities and deposits (liquid reserves)

31,123

Gold1

51

Special drawing rights (SDRs)

898

Reserve position in the IMF

2,142

Total:

October 31, 2005

34,214

September 30, 2005*

33,599

Net change

615

Details on Deposits

Other central banks/Bank for International Settlements

1,032

Banks headquartered in Canada

0

Of which: located abroad

0

Banks headquartered abroad

2,741

Of which: located in Canada

0

Total

3,773

Details of Net Change

Reserves management operations2

906

Gains and losses on gold sales

0

Net investment gains and losses

Return on investments3

-113

Foreign currency debt charges

-114

Revaluation effects4

-64

Net government operations5

0

Official intervention

0

Other transactions

0

Net change

615

Currency Composition of Deposits and Securities

US dollars

16,909

Euro

13,259

Yen

952

Other

3

Total

31,123

* The total official international reserves figure for September 2005 has been restated from US$33,606 million to US$33,599 million. See the footnote at the end of this document for further information.

1. There were no sales of gold settled in October. On October 31, gold holdings stood at 0.1 million ounces. The valuation is based on the October 31, 2005, London p.m. fix of US$470.75 per ounce.

2. Net change in securities and deposits resulting from foreign currency funding activities of the Government. (Issuance of foreign currency liabilities used to acquire assets increases reserves, while maturities decrease reserves). During October, Canada bills increased by US$274 million to a level of outstanding bills of US$2,022 million. Cross-currency swaps of domestic obligations raised an equivalent of US$632 million.

3. "Return on investments" comprises US$82 million of interest earned on investments and a US$195-million decrease in the market value of securities resulting from changes in interest rates.

5. "Net government operations" are the net purchases of foreign currency for government foreign exchange requirements and for additions to reserves.

6. Predetermined short-term drains include the Government's contractual obligations in foreign currencies related to payments of principal and interest associated with securities and commitments under swaps and forward contracts coming due during the next 12 months.

* The total official international reserves figures for December 2003, November and December 2004, and April to September 2005 have been restated. The magnitude of the restatements is minor. The market valuation of US dollar- and euro-denominated securities held as part of Canada's reserves has been adjusted.